Manpower - staffing services, registration required or not

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AMAR GANDHI (Querist)

17 June 2017 I am starting a new business of providing manpower services from my office based in Ahmedabad. Once I start, I may have clients located in other states too and provide manpower services to them in other states too. Do i need to do GST registration from very first day of starting the business or I have heard that it is not necessary to do GST registration till Rs. 20lac turnover. Please confirm whether it is true.

Secondy, do I need to apply immediately once turnover reaches Rs. 20 Lacs and what would be the applicable GST rate for my category of services.

Thirdly, I believe that since this is intangible service, how would buyer of my service get input tax credit, if I charge GST from them.

Please help clarify my queries.

Thanks,
Amar Gandhi
Gujarat

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

17 June 2017 You need to do GST registration from very first day of starting as you have clients located in other states too and provide manpower services to them in other states too. Limit of 20 lacs is for thos providing the service within the state.
The rate of GST is 18% and when you file GST return your client get credit.

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